National Research Council is considering the establishment of $2 million endowment held in perpetuity of a Visiting

Question:

National Research Council is considering the establishment of $2 million endowment held in of a Visiting Professor chair at UOIT. The ongoing cost will be $12 500 at the end of each month. What monthly compounded nominal rate of return must be earned to fully fund the position?A) 0.625%B) 6.25%C) 0.075%D) 7.5%E) 6%
Perpetuity
Perpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...